Why are poor people not able to stash away some money? The answer to this question might seem to be blindingly obvious. They do not earn sufficient amount of money.
It’s too easy an answer. Yes.
But, it sounds as if some defeatist said that.
A lot of people in America suffer from not being able to reduce debt and increase savings. This is a disturbing trend. The poorest of Americans do not have any kind of a financial asset- nothing to rely on for retirement or emergencies.
Studies, which were conducted to find out why poor people could not save money, told a different story. When strapped for cash, people stop thinking about saving money, even if they have something to put aside. Yes, poor people do not end up saving money not due to financial convenience, or the harrowingly poor credit history. But, they lose the power to believe that they actually could save some money.
The minute they find a little surplus, friends and family would come knocking at their doors, asking for some money. Yes, there is social pressure. And, it shows.
Of course, there were quite a few other obstacles as well. Some poor people feared missing out on welfare benefits if they started saving money.
So, how do poor people start to improve? Isn’t there any workaround at all?
Yes, there is.
Stop eating out.
Fight the lure of buying stuff at the local dollar store.
Saving when every media message entices you to spend can be as difficult as kicking addiction. And every dollar saved when you earn very little is a kind of victory.
Resist the urge to spend when every advert you see pushes you to shell out money.
Dare to do something crazy. For instance, say no to sweets and savories for a week or two. Try it for a month if you can. You will, for sure, end up saving some money.
Think about starting a small business. Why not? In any case, not all business loans are hard to obtain. Navigate your way through the various funding options. Businessloansdirect.com mentions with so many options available, you do not have to bend over backwards to take out small business loans.
Every dollar of money saved when your earnings are not much is surely a success.